Personal Finance WISE Test
Questions with Complete
Solutions
Short Selling - Answer- Selling stock you do not own, hoping to cover your position later
at a lower price.
NYSE - Answer- World's largest stock exchange, containing the most blue chip stocks.
Discretionary Income - Answer- Money left after paying expenses.
Homeowner's Insurance - Answer- Insurance that covers damage to your home,
personal property and injuries to others.
Term Life - Answer- Insurance that provides death benefit coverage for a specified
period of time (usually 10-30 years).
Uninsured Motorist - Answer- Insurance that covers your car that is totaled by a hit and
run driver.
Owe government - Answer- This is what happens at tax time if you claimed more
allowances all year than you should have.
Long-Term Care - Answer- You are injured in an accident and you can't bathe, dress or
feed yourself. What type of insurance would you use?
Co-pay - Answer- Specific small dollar amount (about $10-$30) you pay your doctor
each time you visit.
$250,000 - Answer- FDIC insures up to how much per account type, per depositor.
Direct Deposit - Answer- Electronic banking service that enables you to have your
paycheck go right into your bank account.
Restrictive - Answer- Type of endorsement that only allows you to deposit a check into
your account.
Credit Union - Answer- Type of financial institution that is not-for-profit and only serves
its members (better rates).
, The Fed - Answer- Central bank of the United States, whose primary role in the U.S.
economy is the regulation of the money supply.
Certificate of Deposit - Answer- Type of savings account that requires you to keep your
money in the account for a specific period of time.
Rule of 72 - Answer- A way to quickly figure out how long it would take to double your
money.
MSRP - Answer- "Sticker price" or the price the manufacturer "tells" the dealer to sell a
car for.
FTC - Answer- The nation's consumer protection agency that enforces laws and hears
complaints.
Comprehensive - Answer- Your car is stolen and then set on fire. What type of
insurance do you need?
APR - Answer- Percentage cost of credit on a yearly basis.
Credit Report - Answer- Personal Info, Credit History, Inquiries, Public Records
28% - Answer- As a general rule, you should not spend more than what percent on
housing costs?
Cosigning - Answer- Under the Credit CARD Act, how can an underage consumer
(under 21) get a credit card?
Peril - Answer- Earthquake, Flood, Fire
21 days - Answer- Under the Credit CARD Act, the minimum grace period is:
only applies to new balances - Answer- Under the Credit CARD Act, if banks increase
your interest rate, it :
Stop Order - Answer- An order to sell a stock you own at a price lower than the current
market price because you want to minimize potential losses.
Dow Jones Industrial Average - Answer- Market index that contains 30 of the largest
companies, yet is a widely used and accurate indicator of stock market performance.
Life Insurance Factors - Answer- Age, Gender, Smoking, Hobbies, Occupation, etc.
Endorsement in Full - Answer- An endorsement used to transfer a check to a third party.
Questions with Complete
Solutions
Short Selling - Answer- Selling stock you do not own, hoping to cover your position later
at a lower price.
NYSE - Answer- World's largest stock exchange, containing the most blue chip stocks.
Discretionary Income - Answer- Money left after paying expenses.
Homeowner's Insurance - Answer- Insurance that covers damage to your home,
personal property and injuries to others.
Term Life - Answer- Insurance that provides death benefit coverage for a specified
period of time (usually 10-30 years).
Uninsured Motorist - Answer- Insurance that covers your car that is totaled by a hit and
run driver.
Owe government - Answer- This is what happens at tax time if you claimed more
allowances all year than you should have.
Long-Term Care - Answer- You are injured in an accident and you can't bathe, dress or
feed yourself. What type of insurance would you use?
Co-pay - Answer- Specific small dollar amount (about $10-$30) you pay your doctor
each time you visit.
$250,000 - Answer- FDIC insures up to how much per account type, per depositor.
Direct Deposit - Answer- Electronic banking service that enables you to have your
paycheck go right into your bank account.
Restrictive - Answer- Type of endorsement that only allows you to deposit a check into
your account.
Credit Union - Answer- Type of financial institution that is not-for-profit and only serves
its members (better rates).
, The Fed - Answer- Central bank of the United States, whose primary role in the U.S.
economy is the regulation of the money supply.
Certificate of Deposit - Answer- Type of savings account that requires you to keep your
money in the account for a specific period of time.
Rule of 72 - Answer- A way to quickly figure out how long it would take to double your
money.
MSRP - Answer- "Sticker price" or the price the manufacturer "tells" the dealer to sell a
car for.
FTC - Answer- The nation's consumer protection agency that enforces laws and hears
complaints.
Comprehensive - Answer- Your car is stolen and then set on fire. What type of
insurance do you need?
APR - Answer- Percentage cost of credit on a yearly basis.
Credit Report - Answer- Personal Info, Credit History, Inquiries, Public Records
28% - Answer- As a general rule, you should not spend more than what percent on
housing costs?
Cosigning - Answer- Under the Credit CARD Act, how can an underage consumer
(under 21) get a credit card?
Peril - Answer- Earthquake, Flood, Fire
21 days - Answer- Under the Credit CARD Act, the minimum grace period is:
only applies to new balances - Answer- Under the Credit CARD Act, if banks increase
your interest rate, it :
Stop Order - Answer- An order to sell a stock you own at a price lower than the current
market price because you want to minimize potential losses.
Dow Jones Industrial Average - Answer- Market index that contains 30 of the largest
companies, yet is a widely used and accurate indicator of stock market performance.
Life Insurance Factors - Answer- Age, Gender, Smoking, Hobbies, Occupation, etc.
Endorsement in Full - Answer- An endorsement used to transfer a check to a third party.
